**India and US Near Major Defence Agreement for Fighter Jet Engines**
India and the United States are on the brink of finalizing a pivotal defense agreement, which involves a contract exceeding USD 1 billion for the procurement of 113 engines intended for 97 LCA Mark 1A Tejas fighter jets. This new order supplements the existing contract for 99 GE-404 engines designated for the initial batch of 83 Mark 1A jets.
This development occurs amidst heightened tensions in India-China relations, particularly following the imposition of a 50 percent tariff by the Trump administration on India concerning its trade with Russia. Sources within the defense sector have indicated that discussions regarding the 113 engines are nearing completion, with a formal agreement anticipated by September of this year.
The primary objective of this acquisition is to secure a consistent supply of engines for Hindustan Aeronautics Limited (HAL), which is responsible for manufacturing the indigenous Light Combat Aircraft (LCA). Ensuring a steady supply is vital for HAL to meet its production goals, with the first set of 83 aircraft expected to be delivered by 2029-30, followed by the additional 97 by 2033-34. To fulfill its commitment to the Indian program, American company GE is projected to deliver two engines per month.
In parallel, HAL is engaged in negotiations with GE for a separate agreement to acquire GE-414 engines, which will include an 80 percent transfer of technology. This deal, valued at approximately USD 1.5 billion, is expected to be finalized in the coming months and will provide 200 GE-414 engines necessary for India’s LCA Mark 2 and Advanced Medium Combat Aircraft (AMCA) initiatives.
Additionally, HAL is in advanced discussions with GE regarding the procurement of 200 GE-414 engines for the future LCA Mark 2 and AMCA programs. This significant deal, also estimated at around USD 1.5 billion, represents a crucial step towards India’s ambition of achieving self-reliance in defense manufacturing. The GE-414 engines will be utilized for 162 LCA Mark 2 aircraft and 10 prototypes for the AMCA, which is part of the Indian Air Force’s broader strategy to modernize its aging fleet, particularly the MiG-21s that are nearing retirement.
India is also pursuing an indigenous fighter aircraft engine project in collaboration with the French firm Safran, further emphasizing its commitment to enhancing domestic defense capabilities.
**FAQ**
**What is the significance of the defense deal between India and the US?**
The defense deal is significant as it strengthens India’s military capabilities while fostering closer ties with the US. It ensures a reliable supply of engines for indigenous fighter jets, supporting India’s goal of self-reliance in defense manufacturing.